H.R. 7726Passed one chamberFamily & community
Bill would force, not just allow, cutoffs for repeat child care fraud
Data as of July 23, 2026
The bill changes "may" to "shall," requiring HHS to withhold child care funds from repeatedly noncompliant states.AI-decoded40-second read · 4 questions answered below
Decoded
AI-decodedWhat does this do?
The Stop Child Care Scams Act of 2026 amends the Child Care and Development Block Grant Act of 1990 by changing one word, "may" to "shall," in the provision on withholding federal funds from noncompliant states. This removes the Secretary of Health and Human Services' discretion, making funding withdrawal mandatory when a state repeatedly violates program rules, such as failing to prevent fraud.
Who does it affect?
State governments that administer federally funded child care assistance programs are directly affected, along with families and child care providers who rely on that state funding.
Why does it matter?
States found repeatedly noncompliant, especially on fraud prevention, would automatically lose federal funding rather than facing a discretionary decision, which could disrupt child care programs if underlying problems aren't fixed.
Where does it stand?
- Introduced
- House committee
- House vote
- Senate — You are here
- President's desk
Right now: it passed the House and now goes to the Senate. If the Senate changes it, it goes back to the House before reaching the President.
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Official title
Stop Child Care Scams Act of 2026
- Introduced:
- February 26, 2026
- Latest action:
- June 4, 2026
Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Read the official bill on Congress.gov